Although the UST and LUNA debacle wiped out some $40.000 billion in a few days, cryptocurrencies have proven to be a fairly robust ecosystem, which did not collapse in the face of the collapse of these assets, the Cumberland firm said. This and more news in this practical summary daily so that you are always informedwith events most recent that occur within the crypto world.
Crypto A robust ecosystem?
📍The Cumberland DRW LLC company highlights the robustness of the cryptocurrency industry in the face of the UST collapse. On its Twitter account, the cryptocurrency company noted that despite the collapse of Terra, an ecosystem valued at more than $50.000 billion, nothing in crypto was broken.
The firm said that although there were widespread sell-offs in the crypto market last week, in reality “no (cryptocurrency) exchanges went bankrupt, no protocols disappeared, and no critical crypto infrastructure was created.”
Cumberland recalled the disaster caused by the bankruptcy of the global financial services company Lehman Brothers to highlight the robustness of the cryptocurrency ecosystem. When Lehman Brothers, an institution similar in size to Terra, collapsed, “the entire global financial system was brought to its knees and had to be bailed out with trillions of dollars of taxpayer money,” the firm said.
To date, Lehman Brothers is considered the largest bankruptcy recorded in United States history and is associated with the 2008 global financial crisis.
Terra's chaos continues
📍South Korea sues TerraForm Labs CEO. Do Kwon, creator of the Terra blockchain ecosystem, could face a lawsuit in South Korea as a result of the great fall suffered by the UST stablecoin and the LUNA cryptocurrency, which generated million-dollar losses for millions of investors around the world.
Law firm LKB & Partners is representing a group of Korean investors who want to pursue a class-action legal and criminal lawsuit against Kwon, alleging fraud. One of the demands of the Korean investors is that all of Kwon's property and assets be seized.
The threat of a lawsuit against Kwon comes as the entire Terraform Labs legal team resigned due to the situation they face.
📍Investment firm Pantera Capital sold LUNA before its downfall. Pantera Capital, one of the high-profile investors in the Terra ecosystem, said its investment in Terra (LUNA) was liquidated before the collapse of algorithmic stablecoin TerraUSD (UST) last week.
The investment firm had participated in two rounds of capital from Terraform Labs, which develops the Terra blockchain. However, Pantera Capital had also allocated $1,7 million to invest in the LUNA cryptocurrency when it was listed on the market in 2020.
The firm's telecommunications co-director (CIO), Joey Krug, assures that this investment in LUNA was made with liquid investments and not with venture capital. Furthermore, he pointed out that said investment trended downward from the beginning, as the cryptocurrency revalued and the investment became more profitable, in order to maintain a diversified portfolio. According to the clarifications, the company's $1,7 million investment in LUNA in July 2020 generated profits in the order of $170 million.
Pantera Capital held a small stake in LUNA that was liquidated after the decoupling of the UST stablecoin but before its total collapse.
Bitcoin and Blockchain Adoption
📍Meta Pay: The social media and metaverse giant reveals its plans to launch a payment application with crypto assets. According to trademark attorney Josh Gerben, Meta may have plans to launch its own cryptocurrency payment app.
The social media and metaverse company, formerly known as Facebook, filed five new trademark applications with the United States Patent and Trademark Office (USPTO) for registration of Meta Pay. According to Gerben, Meta's future payment app will allow users to exchange money and cryptocurrencies “the old-fashioned way.”
In December last year, Meta linked its Novi crypto wallet to its instant messaging app WhatsApp, to allow selected users in the United States and Guatemala the ability to exchange money and receive remittances through the Pax Dollar (USDP) stablecoin.
Cybersecurity
📍An intelligence firm launches a tool to report scams and other illicit activities with cryptocurrencies. TRM Labs launched a new tool called Chain Abuse, which will allow the community to report any illicit activity that occurs within the crypto industry.
The new tool is free to use and seeks to make the crypto space safer and more reliable for everyone.
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